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The 2008 Shipping Law: Deregulation Or Re-Regulation?


  • Howard Dick


The restoration of democracy since 1998 has been accompanied by a revival of economic nationalism in Indonesia. This can be seen clearly in the field of shipping and ports. In the 1980s the government deregulated the highly protected and inefficient shipping industry to facilitate a non-oil export drive. Since 1999 a rising tide of economic nationalism has seen a gradual process of re-regulation that has restored some of the old protectionist devices. This new protectionism is likely to frustrate government policies to improve logistics and facilitate trade. At the same time, there has been a mild liberalisation of state control over the ports sector. This paper addresses the key economic regulations embodied in the new Law 17/2008 on Shipping and assesses their potential impact. It highlights an ongoing confl ict in government between protectionism/rent-seeking and development.

Suggested Citation

  • Howard Dick, 2008. "The 2008 Shipping Law: Deregulation Or Re-Regulation?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(3), pages 383-406.
  • Handle: RePEc:taf:bindes:v:44:y:2008:i:3:p:383-406
    DOI: 10.1080/00074910802395336

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    References listed on IDEAS

    1. Hal Hill, 2000. "Indonesia: The Strange and Sudden Death of a Tiger Economy," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 117-139.
    2. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670.
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    1. World Bank Group, 2014. "Policy Options for Liberalizing Philippine Maritime Cabotage Restrictions," World Bank Other Operational Studies 24801, The World Bank.

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